Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Saved Required information Exercise 4-8 (Algo) Computing ABC Product Costs [LO4-2, LO4-3] [The following information applies to the questions displayed below] Performance Products Corporation
Saved Required information Exercise 4-8 (Algo) Computing ABC Product Costs [LO4-2, LO4-3] [The following information applies to the questions displayed below] Performance Products Corporation makes two products, titanium Rims and Posts Data regarding the two products follow Rims Posts Direct Labor- Hours per unit 0.30 0.80 Annual Production 21,000 units 80,000 units Additional information about the company follows: a. Rims require $13 in direct materials per unit, and Posts require $9. b. The direct labor wage rate is $19 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment d. The ABC system has the following activity cost pools: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Exercise 4-8 (Algo) Part 1 Required: Estimated Activity Estimated Overhead Cost $ 28,800 $128,800 Rims Posts Total 90 4,000 110 200 $ 1,008,000 6,300 64,000 4,000 70,300 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) < Prey 4 of 10 Next >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started